Denmark Tax Agency Clarifies VAT Exemption for Management of Investment Funds

The Danish Customs and Tax Administration April 14 posted online Tax Council Binding Answer No. SKM2026.180.SR, clarifying the VAT exemption for management of investment funds. The taxpayer, a company, provided technical, environmental, and financial due diligence services to an investment fund (AIF) that was considering investing in a hydroelectric power plant, wind turbine project, and renewable energy plant. The taxpayer sought clarification on whether the services were subject to VAT. Upon review, the Tax Council found that: 1) the services weren’t considered related to real estate, because the assessment of the real estate wasn’t the predominant element of the services; ...